Bankrupt Constar Gets Nod For New $17.4M DIP Loan

Law360, Wilmington (January 14, 2014, 10:33 PM EST) -- Bankrupt plastic-bottle maker Constar International Holdings LLC won court approval Tuesday for a $17.4 million debtor-in-possession financing package, which includes $14.5 million in new operating funds, following a bidding battle between creditors seeking to provide the loan.

At a hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi agreed to sign off on a DIP loan furnished by debtholder Black Diamond Commercial Finance LLC after ordering Constar to solicit a final round of offers from the prospective lenders.